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Total Net Assets

$724M
as of 12/31/2020

Inception

December 4, 2014
DHHAX (Investor)
DHHIX (Class I)
DHHYX (Class Y)

Status

Open

Investment Strategy

  • Our primary focus is on evaluating the underlying business fundamentals and credit risk of high yield securities.
  • Securities are purchased when we believe the yield and total return potential are attractive relative to asset and interest coverage and relative to other securities with comparable risk.
  • We are prepared to hold securities to maturity or until they are called. However, securities may be sold when the gap between price and our estimate of value closes, to raise proceeds for a more attractive opportunity, or if the underlying fundamentals deteriorate.

Team

Bill Zox, CFA

Portfolio Manager

John McClain, CFA

Portfolio Manager

Douglas Gimple

Senior Portfolio Specialist

Monthly

As of 3/4/2021 Period and Annualized Total Returns as of 2/28/2021 Expense Ratio
NAVYTD Return Since Inception
(12/4/2014)
5-YR 3-YR 1-YR 3MO. Feb. Total
Investor (DHHAX) 11.43 1.11 8.67 11.42 9.72 13.53 2.94 0.65 0.96
Class I (DHHIX) 11.44 1.23 8.98 11.74 10.01 13.85 3.01 0.67 0.67
Class Y (DHHYX) 11.45 1.16 9.11 11.87 10.19 14.05 3.03 0.67 0.55
Benchmark
ICE BofA U.S. High Yield Index 5.92 8.84 6.25 8.62 2.65 0.35
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Quarterly

As of 3/4/2021 Period and Annualized Total Returns as of 12/31/2020 Expense Ratio
NAVYTD Return Since Inception
(12/4/2014)
5-YR 3-YR 1-YR 3MO. Total
Investor (DHHAX) 11.43 1.11 8.71 10.61 9.62 13.40 6.40 0.96
Class I (DHHIX) 11.44 1.23 9.01 10.91 9.89 13.62 6.47 0.67
Class Y (DHHYX) 11.45 1.16 9.16 11.06 10.06 13.92 6.58 0.55
Benchmark
ICE BofA U.S. High Yield Index 5.95 8.43 5.89 6.17 6.48
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The performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The Fund's current performance may be lower or higher than the performance data quoted. Investors may obtain performance information current to the most recent month-end, within 7 business days, at diamond-hill.com.

Performance returns assume reinvestment of all distributions. Returns for the periods less than one year are not annualized. These total return figures may reflect the waiver of a portion of a Fund's advisory or administrative fees for certain periods. In such instances, and without such waiver of fees, the total return would have been lower.

Calendar Year Returns

Year Class I (DHHIX) ICE BofA U.S. High Yield Index
2020 13.62 6.17
2019 15.44 14.41
2018 1.16 -2.26
2017 10.36 7.48
2016 14.62 17.49
2015 0.28 -4.64

Morningstar Ratings (Class I Shares)

Category

High Yield Bond

Fee Level

Below Average

Overall Rating

     

The Overall Morningstar RatingTM is based on 627 High Yield Bond funds derived from a weighted average of the performance figures associated with its 3-year Morningstar Rating as of 12/31/20.

Statistics

Portfolio Statistics1,2 as of December 31, 2020

Management Fee 0.50%
Distribution Frequency Monthly
Portfolio Turnover (12 months trailing) 186%
Number of Issues in Portfolio 128
Effective Duration 2.93
Weighted Average Maturity 5.90
Yield to Worst 4.93%
30 Day SEC Yield
Investor 4.14%
Class I 4.59%
Class Y 4.69%

Five Year Risk Statistics1 as of December 31, 2020 (Class I Shares)

Standard Deviation 7.87%
Sharpe Ratio 1.21

Portfolio

Portfolio Guidelines

The Fund generally invests at least 80% of its net assets in a diversified portfolio of corporate debt securities that are rated below investment grade or are unrated.

Top Ten Issues as of December 31, 2020

  % of Net Assets
Alliance Data Systems Corp. 7.0% 01/15/2026 2.7
Magnolia Oil & Gas Corp. 6.0% 08/01/2026 2.2
New Residential Investment Corp. 6.250% 10/15/2025 2.1
Cimpress N.V. 7.0% 06/15/2026 1.9
Uber Technologies, Inc. 8.0% 11/01/2026 1.8
Welltec A/S 9.50% 12/01/2022 1.7
Apergy Corp. 6.375% 05/01/2026 1.7
Delta Air Lines, Inc. 2.90% 10/28/2024 1.7
Grubhub Holdings, Inc. 5.50% 07/01/2027 1.7
Credit Acceptance 6.625% 03/15/2026 1.6
Total as % of Net Assets 19.1%

Sector Allocation3 as of December 31, 2020

High Yield Fund ICE BofA U.S. High Yield Index
Corporate Bonds 96.8 100.0
Leisure 13.5 6.2
Energy 12.6 13.4
Financial Services 11.2 4.2
Retail 10.9 4.9
Healthcare 6.7 8.9
Real Estate 6.2 4.2
Consumer Goods 6.1 4.9
Services 4.7 4.5
Technology & Electronics 4.1 5.0
Basic Industry 3.9 9.1
Insurance 3.8 1.1
Transportation 3.7 1.5
Telecom 3.2 6.8
Automotive 2.3 5.3
Media 1.9 9.0
Banking 1.7 1.3
Capital Goods 0.5 6.5
Utility 0.0 3.2
Securitized 0.1 0.0
Cash & Other 3.1 0.0

Credit Quality4,5 as of December 31, 2020

Quality Rating % of Portfolio
Investment Grade 9.4
BB 40.0
B 39.0
CCC & Lower 6.4
Not Rated 5.2

Distributions

Income Short-Term Long-Term Record Date Pay Date Reinvestment NAV
Investor (DHHAX) 0.0440 02/24/21 02/26/21 11.44
Investor (DHHAX) 0.0520 01/27/21 01/29/21 11.41
Class I (DHHIX) 0.0460 02/24/21 02/26/21 11.44
Class I (DHHIX) 0.0540 01/27/21 01/29/21 11.41
Class Y (DHHYX) 0.0470 02/24/21 02/26/21 11.46
Class Y (DHHYX) 0.0550 01/27/21 01/29/21 11.43
Investor (DHHAX) 0.0520 12/29/20 12/31/20 11.39
Investor (DHHAX) 0.4466 0.0006 12/11/20 12/15/20 11.38
Investor (DHHAX) 0.0520 11/25/20 11/30/20 11.68
Investor (DHHAX) 0.0540 10/28/20 10/30/20 11.29
Investor (DHHAX) 0.0520 09/28/20 09/30/20 11.26
Investor (DHHAX) 0.0500 08/27/20 08/31/20 11.34
Investor (DHHAX) 0.0580 07/29/20 07/31/20 11.16
Investor (DHHAX) 0.0530 06/26/20 06/30/20 10.82
Investor (DHHAX) 0.0500 05/27/20 05/29/20 10.53
Investor (DHHAX) 0.0410 04/28/20 04/30/20 10.05
Investor (DHHAX) 0.0350 03/27/20 03/31/20 9.65
Investor (DHHAX) 0.0420 02/26/20 02/28/20 11.10
Investor (DHHAX) 0.0470 01/29/20 01/31/20 11.12
Class I (DHHIX) 0.0550 12/29/20 12/31/20 11.40
Class I (DHHIX) 0.4466 0.0006 12/11/20 12/15/20 11.38
Class I (DHHIX) 0.0540 11/25/20 11/30/20 11.68
Class I (DHHIX) 0.0570 10/28/20 10/30/20 11.30
Class I (DHHIX) 0.0550 09/28/20 09/30/20 11.27
Class I (DHHIX) 0.0530 08/27/20 08/31/20 11.34
Class I (DHHIX) 0.0610 07/29/20 07/31/20 11.16
Class I (DHHIX) 0.0550 06/26/20 06/30/20 10.82
Class I (DHHIX) 0.0520 05/27/20 05/29/20 10.53
Class I (DHHIX) 0.0430 04/28/20 04/30/20 10.06
Class I (DHHIX) 0.0390 03/27/20 03/31/20 9.65
Class I (DHHIX) 0.0450 02/26/20 02/28/20 11.10
Class I (DHHIX) 0.0490 01/29/20 01/31/20 11.13
Class Y (DHHYX) 0.0560 12/29/20 12/31/20 11.41
Class Y (DHHYX) 0.4466 0.0006 12/11/20 12/15/20 11.40
Class Y (DHHYX) 0.0550 11/25/20 11/30/20 11.69
Class Y (DHHYX) 0.0580 10/28/20 10/30/20 11.31
Class Y (DHHYX) 0.0560 09/28/20 09/30/20 11.28
Class Y (DHHYX) 0.0540 08/27/20 08/31/20 11.35
Class Y (DHHYX) 0.0620 07/29/20 07/31/20 11.17
Class Y (DHHYX) 0.0560 06/26/20 06/30/20 10.83
Class Y (DHHYX) 0.0530 05/27/20 05/29/20 10.54
Class Y (DHHYX) 0.0440 04/28/20 04/30/20 10.07
Class Y (DHHYX) 0.0390 03/27/20 03/31/20 9.66
Class Y (DHHYX) 0.0460 02/26/20 02/28/20 11.10
Class Y (DHHYX) 0.0500 01/29/20 01/31/20 11.13
Investor (DHHAX) 0.0480 12/27/19 12/31/19 11.03
Investor (DHHAX) 0.1122 12/11/19 12/13/19 10.99
Investor (DHHAX) 0.0480 11/26/19 11/29/19 11.03
Investor (DHHAX) 0.0500 10/29/19 10/31/19 10.99
Investor (DHHAX) 0.0490 09/26/19 09/30/19 10.97
Investor (DHHAX) 0.0510 08/28/19 08/30/19 11.07
Investor (DHHAX) 0.0540 07/29/19 07/31/19 10.98
Investor (DHHAX) 0.0500 06/26/19 06/28/19 10.96
Investor (DHHAX) 0.0490 05/29/19 05/31/19 10.79
Investor (DHHAX) 0.0490 04/26/19 04/30/19 10.88
Investor (DHHAX) 0.0510 03/27/19 03/29/19 10.69
Investor (DHHAX) 0.0460 02/26/19 02/28/19 10.59
Investor (DHHAX) 0.0500 01/29/19 01/31/19 10.50
Class I (DHHIX) 0.0500 12/27/19 12/31/19 11.03
Class I (DHHIX) 0.1122 12/11/19 12/13/19 11.00
Class I (DHHIX) 0.0510 11/26/19 11/29/19 11.04
Class I (DHHIX) 0.0530 10/29/19 10/31/19 11.00
Class I (DHHIX) 0.0510 09/26/19 09/30/19 10.98
Class I (DHHIX) 0.0530 08/28/19 08/30/19 11.08
Class I (DHHIX) 0.0570 07/29/19 07/31/19 10.99
Class I (DHHIX) 0.0520 06/26/19 06/28/19 10.96
Class I (DHHIX) 0.0520 05/29/19 05/31/19 10.79
Class I (DHHIX) 0.0510 04/26/19 04/30/19 10.88
Class I (DHHIX) 0.0530 03/27/19 03/29/19 10.70
Class I (DHHIX) 0.0480 02/26/19 02/28/19 10.60
Class I (DHHIX) 0.0520 01/29/19 01/31/19 10.50
Class Y (DHHYX) 0.0510 12/27/19 12/31/19 11.03
Class Y (DHHYX) 0.1122 12/11/19 12/13/19 11.00
Class Y (DHHYX) 0.0520 11/26/19 11/29/19 11.04
Class Y (DHHYX) 0.0540 10/29/19 10/31/19 11.00
Class Y (DHHYX) 0.0520 09/26/19 09/30/19 10.98
Class Y (DHHYX) 0.0540 08/28/19 08/30/19 11.08
Class Y (DHHYX) 0.0580 07/29/19 07/31/19 10.99
Class Y (DHHYX) 0.0530 06/26/19 06/28/19 10.96
Class Y (DHHYX) 0.0530 05/29/19 05/31/19 10.79
Class Y (DHHYX) 0.0520 04/26/19 04/30/19 10.88
Class Y (DHHYX) 0.0540 03/27/19 03/29/19 10.70
Class Y (DHHYX) 0.0490 02/26/19 02/28/19 10.60
Class Y (DHHYX) 0.0530 01/29/19 01/31/19 10.50
Investor (DHHAX) 0.0480 12/27/18 12/31/18 10.21
Investor (DHHAX) 0.0084 0.0391 12/12/18 12/14/18 10.42
Investor (DHHAX) 0.0480 11/28/18 11/30/18 10.45
Investor (DHHAX) 0.0540 10/29/18 10/31/18 10.51
Investor (DHHAX) 0.0460 09/26/18 09/28/18 10.69
Investor (DHHAX) 0.0500 08/29/18 08/31/18 10.70
Investor (DHHAX) 0.0520 07/27/18 07/31/18 10.68
Investor (DHHAX) 0.0580 06/27/18 06/29/18 10.65
Investor (DHHAX) 0.0510 05/29/18 05/31/18 10.65
Investor (DHHAX) 0.0490 04/26/18 04/30/18 10.67
Investor (DHHAX) 0.0560 03/27/18 03/29/18 10.67
Investor (DHHAX) 0.0450 02/26/18 02/28/18 10.76
Investor (DHHAX) 0.0560 01/29/18 01/31/18 10.85
Class I (DHHIX) 0.0510 12/27/18 12/31/18 10.22
Class I (DHHIX) 0.0084 0.0391 12/12/18 12/14/18 10.43
Class I (DHHIX) 0.0510 11/28/18 11/30/18 10.46
Class I (DHHIX) 0.0570 10/29/18 10/31/18 10.52
Class I (DHHIX) 0.0480 09/26/18 09/28/18 10.70
Class I (DHHIX) 0.0530 08/29/18 08/31/18 10.70
Class I (DHHIX) 0.0550 07/27/18 07/31/18 10.69
Class I (DHHIX) 0.0600 06/27/18 06/29/18 10.66
Class I (DHHIX) 0.0530 05/29/18 05/31/18 10.66
Class I (DHHIX) 0.0510 04/26/18 04/30/18 10.68
Class I (DHHIX) 0.0590 03/27/18 03/29/18 10.67
Class I (DHHIX) 0.0480 02/26/18 02/28/18 10.76
Class I (DHHIX) 0.0570 01/29/18 01/31/18 10.85
Class Y (DHHYX) 0.0520 12/27/18 12/31/18 10.22
Class Y (DHHYX) 0.0084 0.0391 12/12/18 12/14/18 10.43
Class Y (DHHYX) 0.0520 11/28/18 11/30/18 10.46
Class Y (DHHYX) 0.0580 10/29/18 10/31/18 10.52
Class Y (DHHYX) 0.0490 09/26/18 09/28/18 10.69
Class Y (DHHYX) 0.0540 08/29/18 08/31/18 10.70
Class Y (DHHYX) 0.0560 07/27/18 07/31/18 10.69
Class Y (DHHYX) 0.0610 06/27/18 06/29/18 10.66
Class Y (DHHYX) 0.0540 05/29/18 05/31/18 10.65
Class Y (DHHYX) 0.0520 04/26/18 04/30/18 10.68
Class Y (DHHYX) 0.0600 03/27/18 03/29/18 10.67
Class Y (DHHYX) 0.0480 02/26/18 02/28/18 10.76
Class Y (DHHYX) 0.0580 01/29/18 01/31/18 10.85
Investor (DHHAX) 0.0550 12/27/17 12/29/17 10.77
Investor (DHHAX) 0.2628 12/13/17 12/15/17 10.80
Investor (DHHAX) 0.0560 11/28/17 11/30/17 11.01
Investor (DHHAX) 0.0550 10/27/17 10/31/17 11.05
Investor (DHHAX) 0.0500 09/27/17 09/29/17 11.04
Investor (DHHAX) 0.0530 08/29/17 08/31/17 11.01
Investor (DHHAX) 0.0520 07/27/17 07/31/17 11.05
Investor (DHHAX) 0.0530 06/28/17 06/30/17 11.02
Investor (DHHAX) 0.0530 05/26/17 05/31/17 10.98
Investor (DHHAX) 0.0670 04/26/17 04/28/17 10.92
Investor (DHHAX) 0.0530 03/29/17 03/31/17 10.87
Investor (DHHAX) 0.0530 02/24/17 02/28/17 10.82
Investor (DHHAX) 0.0540 01/27/17 01/31/17 10.71
Class I (DHHIX) 0.0580 12/27/17 12/29/17 10.77
Class I (DHHIX) 0.2628 12/13/17 12/15/17 10.80
Class I (DHHIX) 0.0580 11/28/17 11/30/17 11.02
Class I (DHHIX) 0.0580 10/27/17 10/31/17 11.06
Class I (DHHIX) 0.0530 09/27/17 09/29/17 11.05
Class I (DHHIX) 0.0550 08/29/17 08/31/17 11.01
Class I (DHHIX) 0.0550 07/27/17 07/31/17 11.05
Class I (DHHIX) 0.0560 06/28/17 06/30/17 11.02
Class I (DHHIX) 0.0560 05/26/17 05/31/17 10.98
Class I (DHHIX) 0.0680 04/26/17 04/28/17 10.92
Class I (DHHIX) 0.0560 03/29/17 03/31/17 10.87
Class I (DHHIX) 0.0550 02/24/17 02/28/17 10.82
Class I (DHHIX) 0.0560 01/27/17 01/31/17 10.71
Class Y (DHHYX) 0.0590 12/27/17 12/29/17 10.77
Class Y (DHHYX) 0.2628 12/13/17 12/15/17 10.80
Class Y (DHHYX) 0.0590 11/28/17 11/30/17 11.01
Class Y (DHHYX) 0.0590 10/27/17 10/31/17 11.05
Class Y (DHHYX) 0.0540 09/27/17 09/29/17 11.04
Class Y (DHHYX) 0.0560 08/29/17 08/31/17 11.01
Class Y (DHHYX) 0.0560 07/27/17 07/31/17 11.05
Class Y (DHHYX) 0.0570 06/28/17 06/30/17 11.02
Class Y (DHHYX) 0.0570 05/26/17 05/31/17 10.98
Class Y (DHHYX) 0.0700 04/26/17 04/28/17 10.92
Class Y (DHHYX) 0.0570 03/29/17 03/31/17 10.87
Class Y (DHHYX) 0.0550 02/24/17 02/28/17 10.82
Class Y (DHHYX) 0.0570 01/27/17 01/31/17 10.71
Investor (DHHAX) 0.0540 12/28/16 12/30/16 10.65
Investor (DHHAX) 0.2350 12/14/16 12/16/16 10.63
Investor (DHHAX) 0.0560 11/28/16 11/30/16 10.75
Investor (DHHAX) 0.0550 10/27/16 10/31/16 10.91
Investor (DHHAX) 0.0640 09/28/16 09/30/16 10.93
Investor (DHHAX) 0.0590 08/29/16 08/31/16 10.97
Investor (DHHAX) 0.0600 07/27/16 07/29/16 10.73
Investor (DHHAX) 0.0590 06/28/16 06/30/16 10.50
Investor (DHHAX) 0.0610 05/26/16 05/31/16 10.52
Investor (DHHAX) 0.0560 04/27/16 04/29/16 10.51
Investor (DHHAX) 0.0450 03/29/16 03/31/16 10.23
Investor (DHHAX) 0.0490 02/25/16 02/29/16 9.77
Investor (DHHAX) 0.0440 01/27/16 01/29/16 9.86
Class I (DHHIX) 0.0570 12/28/16 12/30/16 10.65
Class I (DHHIX) 0.2350 12/14/16 12/16/16 10.64
Class I (DHHIX) 0.0580 11/28/16 11/30/16 10.75
Class I (DHHIX) 0.0570 10/27/16 10/31/16 10.91
Class I (DHHIX) 0.0670 09/28/16 09/30/16 10.92
Class I (DHHIX) 0.0630 08/29/16 08/31/16 10.97
Class I (DHHIX) 0.0620 07/27/16 07/29/16 10.73
Class I (DHHIX) 0.0620 06/28/16 06/30/16 10.50
Class I (DHHIX) 0.0630 05/26/16 05/31/16 10.52
Class I (DHHIX) 0.0580 04/27/16 04/29/16 10.51
Class I (DHHIX) 0.0450 03/29/16 03/31/16 10.23
Class I (DHHIX) 0.0510 02/25/16 02/29/16 9.77
Class I (DHHIX) 0.0500 01/27/16 01/29/16 9.85
Class Y (DHHYX) 0.0580 12/28/16 12/30/16 10.65
Class Y (DHHYX) 0.2350 12/14/16 12/16/16 10.63
Class Y (DHHYX) 0.0590 11/28/16 11/30/16 10.75
Class Y (DHHYX) 0.0580 10/27/16 10/31/16 10.90
Class Y (DHHYX) 0.0680 09/28/16 09/30/16 10.92
Class Y (DHHYX) 0.0640 08/29/16 08/31/16 10.97
Class Y (DHHYX) 0.0630 07/27/16 07/29/16 10.73
Class Y (DHHYX) 0.0630 06/28/16 06/30/16 10.50
Class Y (DHHYX) 0.0640 05/26/16 05/31/16 10.52
Class Y (DHHYX) 0.0590 04/27/16 04/29/16 10.51
Class Y (DHHYX) 0.0450 03/29/16 03/31/16 10.23
Class Y (DHHYX) 0.0520 02/25/16 02/29/16 9.77
Class Y (DHHYX) 0.0500 01/27/16 01/29/16 9.85

Documents

An investor should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus or summary prospectus contain this and other important information about the Fund(s) and are available at diamond-hill.com or by calling 888.226.5595. Please read the prospectus or summary prospectus carefully before investing. The Diamond Hill Funds are distributed by Foreside Financial Services, LLC (Member FINRA). Diamond Hill Capital Management, Inc., a registered investment adviser, serves as investment adviser to the Diamond Hill Funds and is paid a fee for its services. Diamond Hill Funds are not FDIC insured, may lose value, and have no bank guarantee.

Risk Disclosure:  The Short Duration Securitized Bond Fund, Core Bond Fund, Corporate Credit Fund and High Yield Fund invest in fixed income securities; the value of fixed-income securities varies inversely with interest rates; that is, as interest rates rise, the market value of fixed-income securities will decline. Lower quality debt (ie: “High Yield”) securities involve greater risk of default or price changes due to potential changes in the issuer’s credit quality. The Short Duration Securitized Bond Fund and Core Bond Fund may also invest in asset-backed, mortgage-related, and mortgage-backed securities. The value of investments in mortgage-related and asset-backed securities will be influenced by the factors affecting the housing market and the assets underlying such securities. The securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid. They are also subject to prepayment risk, which occurs when mortgage holders refinance or otherwise repay their loans sooner than expected, creating an early return of principal to holders of the loans.

Fund holdings, sector allocations, and portfolio statistics subject to change without notice.

Analytics provided by The Yield Book® Software.

1 Definitions: Effective duration measures the interest rate risk of the Fund. It is an estimate of the approximate percentage change in the Fund’s net asset value resulting from a one percentage point change in interest rates. Weighted average maturity measures the weighted average of all maturities of the bonds in the portfolio, computed by weighting each maturity date by the market value of the security. Interest rate fluctuations have a greater impact on the price per share of funds holding bonds with longer average lives. Yield to Worst is calculated based on call structures of the underlying securities and represents the least favorable yield to the bond holder. Standard Deviation measures the volatility of the Fund’s returns. Sharpe Ratio uses the Fund’s standard deviation and average excess return over the risk-free rate to determine reward per unit of risk. Statistics for periods less than one year are not annualized. Risk statistics are relative to the ICE BofA U.S. High Yield Index.

Since inception risk statistics are calculated using monthly returns beginning on the first day of the Fund’s first full month of performance.

2 The 30-day SEC Yield represents net investment income earned by the fund over the previous 30-day period, expressed as an annual percentage rate based on the Fund's share price at the end of the 30-day period.

3 Cash & Other may include cash, treasuries, money market funds, and short duration fixed income funds.

4 Security quality ratings are derived from underlying portfolio securities by using the middle rating of Standard & Poor’s, Moody’s, and Fitch. If only two of Standard & Poor’s, Moody’s, and Fitch rates a security the higher of the two is selected. If only one of Standard & Poor’s, Moody’s, and Fitch rates a security the available rating is used. For securities that are not rated by Standard & Poor’s, Moody’s, or Fitch a rating from a secondary Nationally Recognized Statistical Rating Organization (“NRSRO”) may be used. Ratings by any agency represent an opinion only, not a recommendation to buy or sell. Securities that are not rated by any agencies are reflected as Not Rated “NR”.

5 Investment Grade is a Bond Quality Rating of AAA, AA, A or BBB.

The quoted performance for the Fund reflects the past performance of Diamond Hill High Yield Fund L.P. (the “High Yield Partnership”), a private fund managed with full investment authority by the fund’s Adviser. The Fund is managed in all material respects in a manner equivalent to the management of the predecessor unregistered fund. The performance of the High Yield Partnership has been restated to reflect the net expenses and maximum applicable sales charge of the fund for its initial years of investment operations. The High Yield Partnership was not registered under the Investment Company Act of 1940 and therefore was not subject to certain investment restrictions imposed by the 1940 Act. If the High Yield Partnership had been registered under the 1940 Act, its performance may have been adversely affected. Performance is measured from December 4, 2014, the inception of the High Yield Partnership and is not the performance of the fund. The assets of the High Yield Partnership were converted, based on their value on December 31, 2015, into assets of the fund prior to commencement of operations of the fund. The High Yield Partnership’s past performance is not necessarily an indication of how the fund will perform in the future either before or after taxes.

The ICE BofA U.S. High Yield Index tracks the performance of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market.

Index data source: ICE Data Indicies, LLC. See diamond-hill.com/disclosures for a full copy of the disclaimer. The ICE index data referenced herein is the property of ICE Data Indices, LLC, its affiliates (“ICE Data”) and/or its third party suppliers and has been licensed for use by Diamond Hill Capital Management, Inc. ICE Data and its third party suppliers accept no liability in connection with its use. ICE Data was not involved in the creation of the blended indexes. These indices do not incur fees and expenses (which would lower the return) and are not available for direct investment.

The Overall Morningstar Rating™ is based on 627 High Yield Bond funds as of 12/31/20. The Fund’s Class I rating was 5 stars among 627 funds for the 3-year period ended 12/31/20.

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

The Morningstar Broad Fee Level data point compares the fund's prospectus adjusted operating net expense ratio to the prospectus adjusted operating net expense ratio of all the other funds within its Morningstar Category.

© 2021 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.